Sunday 15 September 2019

Global stocks and sterling rally

A trader works on the floor of the New York Stock Exchange in New York. Photo: Reuters
A trader works on the floor of the New York Stock Exchange in New York. Photo: Reuters

Donal O'Donovan / Reuters

Global stocks began the new month buoyantly yesterday after a brutal October while in currency markets the pound rallied on reports that the UK and European Union were close to a post-Brexit deal on financial services.

A hint from the Bank of England of slightly faster future rate rises also helped the pound further.

The MSCI All-Country World Index, which tracks stocks in 47 countries, was up 0.3pc on the day.

In Dublin the Iseq share index was up slightly to 6,156. The Dublin market saw big declines for Aryzta (down 16.92pc) after its shareholders voted through a capital increase, and Glanbia (down 8.32pc) after third quarter results.

Gainers included Ryanair, up 3.56pc, and builder Glenveigh Properties, up 4.7pc.

European markets followed a strong start in Asia, with robust company earnings helping the pan-European STOXX 600 index touch a two-week high.

Britain's FTSE 100 was flat, however, as the pound strengthened on a report Britain and the EU were advancing towards a deal that would give financial services firms in the UK continued access to European markets once Brexit happens.

The pound extended its rally yesterday after the Bank of England kept interest rates on hold and hinted at slightly faster future rate rises if Brexit goes smoothly.

Sterling's rally nudged the dollar off its recent peak. The euro rose over 0.75pc to $1.1376 after retreating to $1.1302 on Wednesday, its lowest since mid-August.

The single currency has been weighed by less-than-stellar economic news from the eurozone.

Irish Independent

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